S&P 500 November 2025: Worst Performance Since 2008 Amid Liquidity Stress

The S&P 500 index has fallen ~3.42% in November 2025 as of Nov18, its worst November performance since 2008 when it declined ~7.48% [0][2]. The decline is not broad-based: Energy sector outperformed (+2.01%) while Consumer Defensive underperformed (-1.62%) on Nov18 [1]. Emerging liquidity stress in repo markets (banks using SRF for first time in size since pandemic) is a concern, but corporate credit spreads remain tight (below historical median) [3]. This contrasts with 2008, when both repo stress and credit spreads reached crisis levels.

1. Sector Divergence
   : The decline is selective rather than broad-based, indicating market differentiation between sectors rather than systemic panic.
2. Liquidity vs Credit
   : Repo market stress signals near-term liquidity risks, but tight credit spreads suggest healthy long-term investor risk appetite.
3. Historical Context
   : While the 2025 decline is the worst in 17 years, it remains less severe than the 2008 crisis (~3.42% vs ~7.48% full-month drop).

• Liquidity Risk
  : Escalating repo rate pressures and increased SRF usage could lead to further market volatility [3].
• Sector Concentration
  : Portfolios heavy in Consumer Defensive face higher downside risk [1].

• Energy sector outperformance (+2.01%) offers potential hedging opportunities against the broader index decline [1].
• Tight credit spreads indicate corporate bond markets remain resilient, providing alternative investment avenues [3].

All data is sourced from [0], [1], [2], [3] and is for informational purposes only.